Hi, I moved my elderly Grandparents into my home and have been receiving a monthly payment for rent, food, utilities, etc. I have a care contract in place that was written by an attorney. I have spoken to a few CPA's all with differing opinions on how I should report this extra income to the IRS. One says I am a household employee and my Grandparents need to provide me with a W-2, I don't agree with this. One says I could use a Schedule C and deduct their expenses. One suggested I report it all as rental income, which seems too aggressive. I am not trying to evade taxes, I just need to know how to properly report. We hire a caregiver from an agency to look after them while I work full-time. So a large portion of my monthly payment is for expenses--I pay for their housing, food, medications, clothing, etc. Could someone please advise as to how this should be properly reported? Thank you.